FM*** ACCA F9 June 2017 Exam was.. Instant Poll and comments ***

I am very cofidend for most of my answers. Reply me please 1D 2D 3A 4B 5C 6B 7B 8A 9C 10C 11B 12B 13D 14C 15B 16C 17B 18D 19D 20A 21C 22C 23D 24A 25A 26C 27D 28A 29B 30D

Answer to Wacc in question 31 (a) ? Anyone ?? Also how much was valued your cost of equity as percentage in that same question ? How much did you guys get for NPV in question 32 (a). Did anyone attempt question 31 (b) ???

nope

Question 31: are we supposed to include the cost of bank overdraft in the WACC calculation?????????? Question 32: what should be done with variable cost inflation which was $52 every year? Are we suppose to do variable cost as 52*1.03 in year, 1 52*1.03*1.03 in year 2, 1 52*1.03*1.03*1.03 in year 3 & 52*1.03*1.03*1.03*1.03 in year 4? or something else????????

Question 31: I had 11% of WACC (10.55%). Agree?

bank loan should have been included with market value of 5m and the cost of loan of 8 - 20% tax ( i don't exactly remember the interest rate and the tax rate) i think i found wacc 11.57% and the npv around 90m something but i always get my calculations wrong! i think MCQs were pretty difficult so i am expecting to fail!

interest rate was 8%

i had 11.something%

mine to 11.68% for 31 and 32 was like 64m or 67m ...check my variable cost thought upside....tnx

Yup bro. Thats how you do for inflation !

I had positive 68 of NPV in Q32

@mdarifansary16 said: mine to 11.68% for 31 and 32 was like 64m or 67m ...check my variable cost thought upside....tnx

got something like this yea

No 31 I got WACC – 11.68%. Part b didnt complete... No 32 NPV was positive but wrongly computed sp didnt compound the 2% inflation n wrongly inserted the investment in year 1. The mcq was a mess...fed up with f9...

11.6% for wacc and 61,385,000 for the npv. I took the remaining balance as a tax shield in year 4

@acca145 said: Bank loan was 8.5% or may be 8% So I took after tax cost of debt =8.5% x.8 =6.8% or 6.4% if 8% . For me something like that, MV for equity = $125.6 mill MV for loan notes = forgot lol MV for bank loan = forgot this one too Cost of equity = 12% WACC = 11.68% though

Cost of equity = 12% same as mine forgot the cost of debt but as i know we dont include bank overdraft in the calculation of WACC coz its not long term debt but may be im wrong

mcq were tricky compared to past exam and mock exam

Had A for Q1. Yes, wacc was 11.67% in q31 (allowing for some rounding. Q32 was npv of 60 to 61 I think. Think I taxed a year which had a loss but probably only lose a mark at the most.

? exactly remember a question where it asked to calculate cost of debt for 8% pref. share. Nominal value was .5 and MV was 10% greater.

@apostolou said: I am very cofidend for most of my answers. Reply me please 1D 2D 3A 4B 5C 6B 7B 8A 9C 10C 11B 12B 13D 14C 15B 16C 17B 18D 19D 20A 21C 22C 23D 24A 25A 26C 27D 28A 29B 30D

For 1 i had a modigliani and miller with tax as ke went up wacc went down For 10 i also went with c. Originaly i was going with a but changed to c. This was the over capitalisation ques

@caspian087 said: ? exactly remember a question where it asked to calculate cost of debt for 8% pref. share. Nominal value was .5 and MV was 10% greater.

Yeah I went with c 76 but when i calculated it i got 73.5... so id say its wrong. I think it was irredemable debt not pref shares

Yes with 10 I did liquidity ratios so option c. The others were signs of under capitalisation

@acca145 said: Tax was in arrears so , The tax taken on year 4 would be send to year 5 .

Really was it how did I miss that! Dam

What was the answer for Payback in NPV mtq? I think it was option A 3.4 years

@adam94 said: What was the answer for Payback in NPV mtq? I think it was option A 3.4 years

Can't remember if it was a b c or d but I'm sure the answer was 3.4

Q22 was about valuation basises: Answers was: a) Net realisable value- when company has no intention to liquidate b)... c)... d) Replacement value when it is going to liquidate

@acca145 said: Happens ? But round diff would be less I got negative balance in year 4 and 5 NPV = $63 mill rounds

Surely i could only loses one mark for this? Hopefully still a pass

The question regarding interest derivatives. I chose a which was that swap of fixed and variable rates must be beneficial to both parties but it was a complete guess. The one about the international Fisher effect and purchasing power parity. I chose that the Fisher effect statementioned was incorrect but purchasing power parity was right. Again a guess. The saving or cost of leading was option a I believe. Around 97k if I remember correctly.

B B B C A A A B C B B B B A B C B D A A C B D B D B C A B A MOST OF THEM WERE GUESSES

Yeap, i might be wrong about irredeemable or pref. share. But i am 100% confident in the absence of any taxes )))))

@louiseabigail said: 11.6% for wacc and 61,385,000 for the npv. I took the remaining balance as a tax shield in year 4

11.6 approx wacc and npv was lil higher than that i guess. Tax and dep allowance must be taken to year 5